Car History: Mitsubishi Almost Bought Out Honda
Honda wasn’t always the automotive giant it is today and was almost taken over by Mitsubishi. What propelled Honda to becoming one of the top automakers in the world?
Written by Andrew Kidd
When someone mentions Honda, they might think of the brand’s history of reliability, safety and innovation. Honda does small cars better than most, too.
Mitsubishi
? Not so much anymore.But Honda wasn’t always on top in the automotive game—and was almost acquired by Mitsubishi before a stunning role-reversal helped Honda make it out on top. Join
Jerry
as we dive in to figure out how this all played out.The ‘90s were a troubled decade for Honda
Honda was struggling in the early 1990s. The company’s founder, Soichiro Honda, had died in late 1991, which left a leadership void in a company reckoning with an outdated product lineup.
The new CEO, Nobuhiro Kawamoto, had taken control of a company that, to Japanese media, seemed destined for a takeover by rival automaker Mitsubishi.
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When Mitsubishi was a big deal in the states
Mitsubishi began selling cars in the U.S. via its dealer network in the 1980s. Its lineup included the Starion hatchback coupe, meant to rival the Toyota Supra and Nissan ZX. But probably the most recognizable Mitsubishi to western consumers at the time was the Lancer, which had great success as a rally car.
After forming a partnership with Chrysler called Diamond-Star Motors, the two automakers established a factory in Illinois to pump out three versions of what were essentially the same car: the Eagle Talon, the Plymouth Laser and the Mitsubishi Eclipse.
These three quickly became favorites of the car modding community; the second-generation green Eclipse driven by Paul Walker was the first shown on-screen in the Fast and Furious movies.
Mitsubishi had also signed endorsement deals with action star Jackie Chan, whose subsequent movies would prominently feature Mitsubishi vehicles through the 1990s. U.S. sales for Mitsubishi peaked at 347,000 units in 2003 following the release of the Lancer Evo.
MORE: Mazda to Mitsubishi, How Car Companies Got Their Names
How did Honda turn things around?
Honda’s then-CEO Kawamoto realized that the company would need to act fast to save itself from a hostile takeover by then-giant Mitsubishi. He led the company to develop the Odyssey minivan and CR-V in 1994 and 1996, respectively, which were both highly successful.
In a somewhat controversial move, Kawamoto ended the company’s participation in Formula 1, which helped Honda avoid financial ruin—and a hostile takeover.
Mitsubishi’s decline in the United States
Mitsubishi’s decline began in the early 2000s, due in part to what Hagerty reports was a brand identity crisis fueled by the automaker’s attempts to compete with other niche brands like Subaru and Mazda in the U.S.
It also didn’t help that Mitsubishi had been covering up defective vehicle issues in the Japanese market to avoid issuing recalls. Mitsubishi never really found its way afterward; sales of the company’s aging lineup started plummeting in the U.S. in 2008 and around 100 of its dealerships closed in Japan.
Honda can now sell twice as many units in a month as Mitsubishi does in a year. The brand is making a small comeback, however. Its U.S. volume was up to 102,000 in 2021 and it’s to be seen if its Outlander SUV can help it stay afloat.
What’s in Mitsubishi’s future?
Mitsubishi is making progress in autonomous vehicle technology with its “scene-aware interaction” tech, which helps convey what the onboard AI sees to its human drivers in a more organic way.
It was also ahead of the game when it came to electric vehicles, introducing the Mitsubishi i-MiEV in 2009, which the company touts as the first highway-capable electric car.
The automaker currently has just one electrified vehicle—the Outlander PHEV—in its small lineup, which now slaps the Eclipse nameplate on an unrelated crossover.
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